Economy Big Beautiful Bill - No Tax on OT and Tips passed the House

[chardog]

“THE ONE, BIG, BEAUTIFUL BILL” has PASSED the House of Representatives! This is arguably the most significant piece of Legislation that will ever be signed in the History of our Country! The Bill includes MASSIVE Tax CUTS, No Tax on Tips, No Tax on Overtime, Tax Deductions when you purchase an American Made Vehicle, along with strong Border Security measures, Pay Raises for our ICE and Border Patrol Agents, Funding for the Golden Dome, “TRUMP Savings Accounts” for newborn babies, and much more! Great job by Speaker Mike Johnson, and the House Leadership, and thank you to every Republican who voted YES on this Historic Bill! Now, it’s time for our friends in the United States Senate to get to work, and send this Bill to my desk AS SOON AS POSSIBLE! There is no time to waste. The Democrats have lost control of themselves, and are aimlessly wandering around, showing no confidence, grit, or determination. They have forgotten their landslide loss in the Presidential Election, and are warped in the past, hoping someday to revive Open Borders for the World’s criminals to be able to pour into our Country, men to be able to play in women’s sports, and transgender for everybody. They don’t realize that these things, and so many more like them, will NEVER AGAIN happen!

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Surprised I dont see a thread on this or maybe it's somewhere else, no tax on OT is kind of a big deal.

unfortunately, no tax on social security was a no go, that would have been substantial, although there is some relief for seniors
some more breakdowns:

via grok
Trump Savings Accounts give newborns a $1,000 government deposit, invested in a stock index fund for future use like education or home buying. Parents can add up to $5,000 yearly, with tax-deferred growth. Withdrawals start at 18, but only half before 25, and all must be used by 31. Qualified uses get capital-gains tax; others are taxed as income. Some praise the early savings boost, but critics say 529 plans offer better tax benefits and flexibility. The accounts' rules and political naming spark debate. Always compare with other savings options before deciding.

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I dont see any real benefit other than $1000, custodial accounts already exists, arguably better up to most account balances, maybe you can double up, but you gotta be fairly wealth to max these things out or have trump savings be better than ugma, 529's can be a bit restrictive.

$2500 child tax credit aint no $5000, gonna need more


25B for the golden dome

175B for border security and wall

and again, no tax on tips and overtime!

 

[lowlife]

Tossed the peasants a few nickels nice!

 

[HockeyBjj]

The party that bitched about debt for decades is the one to have a 7% yearly deficit that brings our debt vs gdp to levels higher than WW2 and has more money spent on interest than the 1 trillion defense budget

This is the absolute worst thing we could do for our country

 

[Rational Poster]

lmao no tax on tips and OT is just another giant loophole for millionaires and billionaires to jump through.

 

[HeffDoesWant]

What's the idea behind no tax on overtime?

I'm a big believer in structuring tax to incentivise behaviours you want. Is this an attempt to increase the standard working week by stealth?

 

[shunyata]

The party that bitched about debt for decades is the one to have a 7% yearly deficit that brings our debt vs gdp to levels higher than WW2 and has more money spent on interest than the 1 trillion defense budget

This is the absolute worst thing we could do for our country

And they snuck in some shit that prevents the judicial branch from being able to check and balance the executive branch.

 

[Sweater of AV]

 

[lowlife]

The party that bitched about debt for decades is the one to have a 7% yearly deficit that brings our debt vs gdp to levels higher than WW2 and has more money spent on interest than the 1 trillion defense budget

This is the absolute worst thing we could do for our country

Last time trump could blame covid for the massive increase in debt. I wonder who takes the blame this time? The ghost of Joe Biden?

 

[chardog]

What's the idea behind no tax on overtime?

I'm a big believer in structuring tax to incentivise behaviours you want. Is this an attempt to increase the standard working week by stealth?

that would be a workaround certainly, but on face value, this can be massive for some folks. Before going on salary, I do recall making near 100K on overtime..... I use to milk the hell out of it

 

[PBAC]

how in the actual hell did they manage to place a tax on tips in the first place. That's illegal in most of europe?

 

[44nutman]

Deficit Donny is back with a mother fucking vegence. . Deficit Donny just looked at Bidens, Bushs, Reagans, and Obamas budget and said hold my Qatari Plane.

 

[cottagecheesefan]

how in the actual hell did they manage to place a tax on tips in the first place. That's illegal in most of europe?

Because it is income and income is taxed. Europe also pretty much doesn’t have a tipping culture because it is built into the price of food, etc. and that price is taxed at the higher European tax rate

What's the idea behind no tax on overtime?

I'm a big believer in structuring tax to incentivise behaviours you want.

The behavior is people that work hard should also be able to play hard. The playing hard part leads to spending, that spending boost the economy

 

[SKYNET]

25B for the golden dome

shit no one asked for, thanks

 

[Satsui Ryu]

The party that bitched about debt for decades is the one to have a 7% yearly deficit that brings our debt vs gdp to levels higher than WW2 and has more money spent on interest than the 1 trillion defense budget

This is the absolute worst thing we could do for our country

That's the thing. Any deficit caused by this will be the next person's problem. They will be the one who gets the blame.

I never thought one person can use so much hyperbole in a single message. C'mon Trump, no need to be so modest.

 

[HeffDoesWant]

that would be a workaround certainly, but on face value, this can be massive for some folks. Before going on salary, I do recall making near 100K on overtime..... I use to milk the hell out of it

I don't doubt it's significant.

I think would simply lead to employers reducing the loadings on over time.

Take your $100k as an example.
I'm guessing you ended up with maybe $70k in your pocket. So now instead of the employer paying $100k and $30k going in tax, now they'd pay $70k $0 goes in tax. Big beautiful win for employers, neutral for staff, and a fucking disaster for the tax payer.

 

[Mr Holmes]

shit no one asked for, thanks

I'm sure some defense contractors asked for it.

 

[WhiteMousse]

Promises ingredients
Promises pizza

 

[SKYNET]

I'm sure some defense contractors asked for it.

Uniparty is good at allocating our tax money for useless junk apparently

 

[fedorthegoat777]

The party that bitched about debt for decades is the one to have a 7% yearly deficit that brings our debt vs gdp to levels higher than WW2 and has more money spent on interest than the 1 trillion defense budget

This is the absolute worst thing we could do for our country

They were on a good role with Musk on the scene for a few weeks. Off the wagon now.

 

[chardog]

I don't doubt it's significant.

I think would simply lead to employers reducing the loadings on over time.

Take your $100k as an example.
I'm guessing you ended up with maybe $70k in your pocket. So now instead of the employer paying $100k and $30k going in tax, now they'd pay $70k $0 goes in tax. Big beautiful win for employers, neutral for staff, and a fucking disaster for the tax payer.

I ran the numbers

and this is a guess on what happens.

100K gross is gonna be 100K gross, that's your pay, and these numbers take into account that base is 50K:
Summary
Employee Taxes on $100,000 Overtime:
Federal income tax: $21,474.04

Social Security: $6,200

Medicare: $1,450

Total: $29,124.04

Net take-home: $70,875.96

Employer Taxes on $100,000 Overtime:
Social Security: $6,200

Medicare: $1,450

FUTA: $0

Total: $7,650

Combined Taxes on Overtime: $29,124.04 + $7,650 = $36,774.04



before Trumps tax, you would net $70,875.96

after trumps tax break, you would net $92,350, the tax break ONLY removes Federal income tax: $21,474.04 portion, you still need to pay for social security, medicare, not technically "tax". Employer pays $107,650 before and after, this remains unchanged. This doesnt include state taxes, those would still be charged if applicable.